10. Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per unit. The acceptance

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10. Stryker Industries received an offer from an exporter for
15,000 units of product at $17.50 per unit. The acceptance of the
offer will not affect normal production or domestic sales prices.
The following data are available: Domestic unit sales price $20
Unit manufacturing costs: Variable 11 Fixed 1 The amount of profit
or loss from acceptance of the offer is a a.$97,500 profit
b.$94,500 loss c.$37,500 loss d.$37,500 profit
12.
Starling Co. is considering disposing of a machine with a book
value of $21,400 and estimated remaining life of five years. The
old machine can be sold for $5,800. A new high-speed machine can be
purchased at a cost of 72,600. It will have a useful life of five
years and no residual value. It is estimated that the annual
variable manufacturing costs will be reduced from $22,500 to
$20,000 if the new machine is purchased. The five-year differential
effect on profit from replacing the machine is a(n)
a.increase of $70,590
b.decrease of $70,590
c.decrease of $54,300
d.increase of $54,300
21.
Widgeon Co. manufactures three products: Bales, Tales, and
Wales. The selling prices are $55, $78, and $32, respectively. The
variable costs for each product are $20, $50, and $15,
respectively. Each product must go through the same processing in a
machine that is limited to 2,000 hours per month. Bales take 5
hours to process; Tales 7 hours; and Wales 1 hour.
The product with the highest contribution margin per machine
hour is
a.Bales and Tales have the same contribution margin.
b.Tales
c.Wales
d.Bales
22.
Widgeon Co. manufactures three products: Bales, Tales, and
Wales. The selling prices are $55, $78, and $32, respectively. The
variable costs for each product are $20, $50, and $15,
respectively. Each product must go through the same processing in a
machine that is limited to 2,000 hours per month. Bales take 5
hours to process; Tales 7 hours; and Wales 1 hour.
The contribution per machine hour for Wales is
a.$28
b.$35
c.$7
d.$17